Contracts that unreasonably restrict competition are unenforceable.

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This is known as the doctrine of unreasonable restraint of trade, which is recognized in most legal systems. Contracts that limit competition to an unreasonable extent or seek to create a monopoly or cartel are generally deemed unenforceable as they violate public policy and restrict economic freedom. Certain exceptions and qualifications may apply depending on the circumstances and jurisdiction, such as non-compete agreements that are reasonable in scope, duration, and geographic reach to protect legitimate business interests such as trade secrets or customer goodwill.

Contracts That Unreasonably Restrict Competition Are Unenforceable